Welcome!

@CloudExpo Authors: Pat Romanski, Yeshim Deniz, Liz McMillan, Ben Uher, Elizabeth White

News Feed Item

Demandware Announces Third Quarter 2012 Financial Results

Demandware®, Inc. (NYSE: DWRE), a leader in on-demand ecommerce, today announced financial results for its third quarter ended September 30, 2012.

Third Quarter Highlights

  • Total revenue for the third quarter was $18.7 million, a 39% year over year increase from $13.5 million in the third quarter of 2011
  • Subscription revenue for the third quarter was $16.3 million, a 45% year over year increase from $11.2 million in the third quarter of 2011
  • 137 live customers and 517 live sites at September 30, 2012
  • Order Center, Demandware’s order management application, implemented in production environment for an early adopter customer

“Our strong subscription revenue growth in the third quarter is further evidence that the Demandware Commerce platform empowers our customers to grow faster, innovate quicker and launch new eCommerce sites more rapidly,” stated Tom Ebling, Chief Executive Officer of Demandware. “We believe that our robust cloud-based eCommerce solution is the best alternative to meet the rigorous requirements of today’s fastest growing retailers and branded manufacturers. Our third quarter financial results demonstrate that our solution is helping customers meet these requirements enabling them to grow their eCommerce businesses. ”

  • Demandware signed significant new customers during the quarter including American Golf, Black Diamond, and Sunbeam Products (Jarden Consumer Solutions).
  • Browns Shoes, Oreck, Gianni Versace, Pier 1 Imports, Tamaris Shoes, and GORE BIKE WEAR® and GORE RUNNING WEAR® Apparel brands from W.L. Gore & Associates, Inc. were among the leading companies that launched new initial sites on the Demandware Commerce platform during the third quarter.
  • Existing customers like Butlers GmbH, Clarins, L’Oreal, New Balance, Reitmans, and Summit Sports launched new ecommerce sites for new geographies or for new brands on the Demandware Commerce platform.

“During the quarter, we continued to invest in expanding our global sales team, enhancing our brand awareness, and innovating our technology platform,” stated Scott Dussault, Demandware Chief Financial Officer. “We are confident that these investments will enable us to further deepen our penetration in the large, robust market for enterprise-class, cloud based eCommerce solutions.”

Demandware’s loss from operations for the third quarter of 2012 was $3.6 million, as compared to a loss from operations of $1.5 million for the same period in 2011, reflecting the company's increased investments to support the growth of its business.

Demandware’s GAAP net loss for the third quarter of 2012 was $3.5 million, or $(0.12) per share attributable to common stockholders, as compared to a net loss of $2.1 million, or $(0.80) per share attributable to common stockholders, for the third quarter of 2011.

Non-GAAP net loss for the third quarter of 2012 was $1.3 million, or $(0.04) per share, as compared to non-GAAP net loss of $1.8 million, or $(0.42) per share, for the third quarter of 2011. (1)

(1)Non-GAAP net loss excludes expenses related to stock-based compensation. Non-GAAP net loss per share excludes expenses related to stock-based compensation and the accretion of redeemable preferred stock.

Quarterly Conference Call

To access the call at 8:30 a.m. today, please dial (866) 783-2140 in the U.S. or +1 (857) 350-1599 internationally. The Passcode for the call is: 23204485. A live webcast of the call will also be available on the investor relations section of the company’s website. An audio replay will be available for one week following the conclusion of the call through November 13, 2012. The replay number is (888) 286-8010 in the U.S. or +1 (617) 801-6888 internationally. The Passcode for the replay is: 17321753. The replay will also be available as a webcast on Demandware’s Investor Relations website.

About Demandware

Demandware is a leading provider of software-as-a-service (SaaS) ecommerce solutions that enable companies to easily design, implement and manage their own customized ecommerce sites, including websites, mobile applications and other digital storefronts. Customers use our highly scalable and integrated Demandware Commerce platform to more easily launch and manage multiple ecommerce sites, initiate marketing campaigns more quickly, and improve ecommerce traffic. For more information about Demandware, visit www.demandware.com, call 888-553-9216 or email [email protected].

Demandware is a registered trademark of Demandware, Inc.

Forward-looking Statements

This release contains forward-looking statements, including statements regarding Demandware's future financial performance, market growth, the demand for Demandware's solutions, and general business conditions. Any forward-looking statements contained in this press release are based upon Demandware's historical performance and its current plans, estimates and expectations and are not a representation that such plans, estimates, or expectations will be achieved. These forward-looking statements represent Demandware's expectations as of the date of this press release. Subsequent events may cause these expectations to change, and Demandware disclaims any obligation to update the forward-looking statements in the future. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, our ability to attract new customers; the extent to which customers renew their contracts for our solution; the seasonality of our business; our ability to manage our growth; the continued growth of the market for on-demand software; the timing and success of solutions offered by our competitors; unpredictable macro-economic conditions; the loss of any of our key employees; the length of the sales and implementation cycles for our solutions; increased demands on our infrastructure and costs associated with operating as a public company; failure to protect our intellectual property; changes in current tax or accounting rules; and other risk and uncertainties. Further information on potential factors that could affect actual results is included in Demandware’s reports filed with the SEC.

Non-GAAP Financial Measures

Demandware has provided in this release financial information that has not been prepared in accordance with GAAP. This information includes non-GAAP net loss and non-GAAP net loss per share. Demandware uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating Demandware’s ongoing operational performance. Demandware believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing its financial measures with other companies in Demandware's industry, many of which present similar non-GAAP financial measures to investors. Non-GAAP net loss and non-GAAP net loss per share exclude expenses related to stock-based compensation and the accretion of redeemable preferred. These amounts are often difficult to predict and often excluded by other companies to help investors understand the operational performance of their business. Non-GAAP financial measures that the Company uses may differ from measures that other companies may use. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measure. A reconciliation of GAAP to the non-GAAP financial measures has been provided in the tables included as part of this press release.

 
 
Demandware, Inc.
Condensed Consolidated Balance Sheets
(unaudited, in thousands)
       
September 30, 2012 December 31, 2011
ASSETS
 
Current assets:
Cash and cash equivalents $ 71,886 $ 14,939
Short-term investments 37,021 -
Accounts receivable — net of allowance of doubtful accounts and credit memos 15,634 16,930
Prepaid expenses and other current assets   3,691     1,878  
Total current assets 128,232 33,747
 
PROPERTY AND EQUIPMENT — Net 8,925 6,404
OTHER ASSETS   1,010     2,735  
Total assets $ 138,167   $ 42,886  
 
LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT)
 
Current Liabilities:
Current portion of notes payable $ 3,403 $ 2,098
Accounts payable 2,650 1,884
Accrued expenses 8,538 7,023
Deferred revenue 17,322 13,960
Deferred rent   118     57  
Total current liabilities   32,031     25,022  
 
Long-term liabilities:
Deferred revenue 13,393 12,210
Notes payable 2,897 1,882
Deferred rent 1,004 682
Preferred stock warrant liability   -     107  
Total liabilities   49,325     39,903  
 
Series A redeemable convertible preferred stock - 14,976
Series B redeemable convertible preferred stock - 18,158
Series C redeemable convertible preferred stock - 27,884
Series D redeemable convertible preferred stock   -     26,585  
Total redeemable convertible preferred stock   -     87,603  
 
Stockholders' equity (deficit):
Common stock 296 45
Additional paid-in capital 168,506 -
Accumulated other comprehensive loss (48 ) (53 )
Accumulated deficit   (79,912 )   (84,612 )
Total stockholders’ equity (deficit)   88,842     (84,620 )
 
Total Liabilities, Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) $ 138,167   $ 42,886  
 
 

Demandware, Inc.
Condensed Consolidated Statements of Operations
(unaudited; in thousands, except per share data)
             
Three Months Ended Nine Months Ended
September 30, September 30,

2012

2011

2012

2011

Revenue:
Subscription $ 16,250 $ 11,220 $ 45,061 $ 30,902
Services   2,456     2,255     8,095     7,029  
Total revenue   18,706     13,475     53,156     37,931  
 
Cost of revenue:
Subscription 3,501 2,473 9,407 6,842
Services   2,990     2,958     8,598     7,655  
Total cost of revenue   6,491     5,431     18,005     14,497  
 
Gross profit 12,215 8,044 35,151 23,434
 
Operating expenses:
Sales and marketing 8,496 5,082 24,402 14,385
Research and development 3,935 2,934 11,490 8,345
General and administrative   3,350     1,526     9,751     4,498  
Total operating expenses   15,781     9,542     45,643     27,228  
 
Loss from operations   (3,566 )   (1,498 )   (10,492 )   (3,794 )
 
Other income (expense) :
Interest income 50 2 97 7
Interest expense (109 ) (79 ) (263 ) (198 )
Other income (expense)   193     (391 )   (455 )   178  
 
Other income (expense) — net   134     (468 )   (621 )   (13 )
Loss before income taxes (3,432 ) (1,966 ) (11,113 ) (3,807 )
Income Tax Expense   39     125     235     180  
 
Net Loss $ (3,471 ) $ (2,091 ) $ (11,348 ) $ (3,987 )
Accretion of redeemable convertible preferred stock   -     (1,318 )   (1,172 )   (3,956 )
 
Net loss attributable to common stockholders $ (3,471 ) $ (3,409 ) $ (12,520 ) $ (7,943 )
 
Net loss per share attributable to common stockholders,
basic and diluted $ (0.12 ) $ (0.80 ) $ (0.57 ) $ (2.20 )
Weighted average common shares outstanding,
basic and diluted   29,200     4,273     22,158     3,617  
 
 

Demandware, Inc.
Stock Based Compensation Expense
(unaudited, in thousands)
             
 
Three Months Ended Nine Months Ended
September 30, September 30,

2012

2011

2012

2011

 
Cost of subscription revenue $ 57 $ 5 $ 119 $ 16
Cost of services revenue 233 22 492 71
Sales and marketing 559 65 1,236 175
Research and development 484 33

 

1,035 455
General and administration   856   158   1,920   426
 
$ 2,189 $ 283 $ 4,802 $ 1,143
 
 

Demandware, Inc.
Condensed Consolidated Statements of Cash Flows
(unaudited, in thousands)
           
Three Months Ended Nine Months Ended
September 30, September 30,

2012

2011

2012

2011

 
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (3,471 ) $ (2,091 ) $ (11,348 ) $ (3,987 )
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization 892 719 2,432 2,119
(Gain) loss on disposal of property and equipment (3 ) - (3 ) 86
Re-measurement of preferred stock warrant liability - (2 ) 426 (5 )
Stock-based compensation 2,189 283 4,802 1,143
Deferred rent expense 144 44 382 311
Other non-cash reconciling items 65 10 93 94
Changes in operating assets and liabilities:
Accounts receivable (1,039 ) (1,112 ) 1,296 (1,087 )
Prepaid expenses and other current assets (385 ) (52 ) (1,259 ) (271 )
Other long-term assets 78 (89 ) 182 (89 )
Accounts payable (134 ) 325 733 (63 )
Accrued expenses 1,167 1,174 1,442 2,108
Deferred revenue   134     378     4,545     (211 )
Net cash (used in) provided by operating activities   (363 )   (413 )   3,723     148  
 
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment (503 ) (304 ) (3,659 ) (3,239 )
Purchase of marketable securities (21,258 ) - (46,577 ) -
Sale and maturity of marketable securities 9,499 - 9,499 -
Proceeds from sale of property and equipment - - - 26
(Increase) decrease in restricted cash and other assets   (3 )   2     (168 )   (41 )
 
Net cash used in investing activities   (12,265 )   (302 )   (40,905 )   (3,254 )
 
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from initial public offering, net of underwriting discounts and commissions - - 94,116 -
Proceeds from exercise of stock options 627 356 1,030 1,568
Deferred offering costs (96 ) (1,089 ) (1,561 ) (1,089 )
Proceeds from issuance of notes payable 157 201 2,757 2,570
Payments of note payable   (954 )   (568 )   (2,219 )   (1,316 )
 
Net cash (used in) provided by financing activities   (266 )   (1,100 )   94,123     1,733  
 
EFFECT OF EXCHANGE RATES ON CASH AND CASH EQUIVALENTS   43     (104 )   6     (2 )
 
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (12,851 ) (1,919 ) 56,947 (1,375 )
 
CASH AND CASH EQUIVALENTS — Beginning of period   84,737     17,692     14,939     17,148  
 
CASH AND CASH EQUIVALENTS — End of period $ 71,886   $ 15,773   $ 71,886   $ 15,773  
 
 

Demandware, Inc.
Calculation of Non-GAAP Operating Loss, Non-GAAP Net Loss, and Non-GAAP Net Loss Per Share
(unaudited; in thousands, except per share data)
           
Three Months Ended Nine Months Ended
September 30, September 30,

2012

2011

2012

2011

Operating loss:
GAAP operating loss $ (3,566 ) $ (1,498 ) $ (10,492 ) $ (3,794 )
Add back:
Stock-based compensation   2,189     283     4,802     1,143  
Total non-GAAP operating loss (1,377 ) (1,215 ) (5,690 ) (2,651 )
 
Net loss:
GAAP net loss $ (3,471 ) $ (2,091 ) $ (11,348 ) $ (3,987 )
Add back:
Stock-based compensation   2,189     283     4,802     1,143  
Total non-GAAP net loss (1,282 ) (1,808 ) (6,546 ) (2,844 )
 
Non-GAAP net loss per share:
Basic & Diluted $ (0.04 ) $ (0.42 ) $ (0.30 ) $ (0.79 )

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@CloudExpo Stories
“We're a global managed hosting provider. Our core customer set is a U.S.-based customer that is looking to go global,” explained Adam Rogers, Managing Director at ANEXIA, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
In recent years, containers have taken the world by storm. Companies of all sizes and industries have realized the massive benefits of containers, such as unprecedented mobility, higher hardware utilization, and increased flexibility and agility; however, many containers today are non-persistent. Containers without persistence miss out on many benefits, and in many cases simply pass the responsibility of persistence onto other infrastructure, adding additional complexity.
Some people worry that OpenStack is more flash then substance; however, for many customers this could not be farther from the truth. No other technology equalizes the playing field between vendors while giving your internal teams better access than ever to infrastructure when they need it. In his session at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will talk through some real-world OpenStack deployments and look into the ways this can benefit customers of all sizes....
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin, ...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his general session at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore...
All clouds are not equal. To succeed in a DevOps context, organizations should plan to develop/deploy apps across a choice of on-premise and public clouds simultaneously depending on the business needs. This is where the concept of the Lean Cloud comes in - resting on the idea that you often need to relocate your app modules over their life cycles for both innovation and operational efficiency in the cloud. In his session at @DevOpsSummit at19th Cloud Expo, Valentin (Val) Bercovici, CTO of Soli...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, discussed the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Both SaaS vendors and SaaS buyers are going “all-in” to hyperscale IaaS platforms such as AWS, which is disrupting the SaaS value proposition. Why should the enterprise SaaS consumer pay for the SaaS service if their data is resident in adjacent AWS S3 buckets? If both SaaS sellers and buyers are using the same cloud tools, automation and pay-per-transaction model offered by IaaS platforms, then why not host the “shrink-wrapped” software in the customers’ cloud? Further, serverless computing, cl...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at 20th Cloud Expo, Ed Featherston, director/senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
SYS-CON Events announced today that DatacenterDynamics has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY. DatacenterDynamics is a brand of DCD Group, a global B2B media and publishing company that develops products to help senior professionals in the world's most ICT dependent organizations make risk-based infrastructure and capacity decisions.
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
As software becomes more and more complex, we, as software developers, have been splitting up our code into smaller and smaller components. This is also true for the environment in which we run our code: going from bare metal, to VMs to the modern-day Cloud Native world of containers, schedulers and micro services. While we have figured out how to run containerized applications in the cloud using schedulers, we've yet to come up with a good solution to bridge the gap between getting your contain...
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Day 2 Keynote at 17th Cloud Expo, Sandy Ca...
"We host and fully manage cloud data services, whether we store, the data, move the data, or run analytics on the data," stated Kamal Shannak, Senior Development Manager, Cloud Data Services, IBM, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
IoT is at the core or many Digital Transformation initiatives with the goal of re-inventing a company's business model. We all agree that collecting relevant IoT data will result in massive amounts of data needing to be stored. However, with the rapid development of IoT devices and ongoing business model transformation, we are not able to predict the volume and growth of IoT data. And with the lack of IoT history, traditional methods of IT and infrastructure planning based on the past do not app...
Niagara Networks exhibited at the 19th International Cloud Expo, which took place at the Santa Clara Convention Center in Santa Clara, CA, in November 2016. Niagara Networks offers the highest port-density systems, and the most complete Next-Generation Network Visibility systems including Network Packet Brokers, Bypass Switches, and Network TAPs.
WebRTC services have already permeated corporate communications in the form of videoconferencing solutions. However, WebRTC has the potential of going beyond and catalyzing a new class of services providing more than calls with capabilities such as mass-scale real-time media broadcasting, enriched and augmented video, person-to-machine and machine-to-machine communications. In his session at @ThingsExpo, Luis Lopez, CEO of Kurento, introduced the technologies required for implementing these idea...
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
Apache Hadoop is emerging as a distributed platform for handling large and fast incoming streams of data. Predictive maintenance, supply chain optimization, and Internet-of-Things analysis are examples where Hadoop provides the scalable storage, processing, and analytics platform to gain meaningful insights from granular data that is typically only valuable from a large-scale, aggregate view. One architecture useful for capturing and analyzing streaming data is the Lambda Architecture, represent...
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @CloudExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.